Confidence Crisis in the Cryptocurrency Industry

Confidence crisis hits the cryptocurrency industry along with regular issues like hiring, financing the functioning of the exchange, technology, marketing etcetera.

Stringent regulations placed on
the cryptocurrency industry and ICOs and hard forking after battles between
developers did not wipe away companies.
Companies have managed to stay around, and they are equipping themselves
work in compliance with regulatory standards.

There are continued promises
about the scope of the cryptocurrency despite the high volatility and overall
bearish trend in the market. Some
investors are not selling, and they are in the HODL mode.

Several investors place a lot of
trust in the spirit of innovation of the blockchain and the idea of digital
assets that are decentralized and not under the control of the government. Several governments are not interested in
permitting the functioning of cross-border transactions out of their control,
so they have chosen to ban it, and they did ban it. There are other countries like Japan who did
not want to lose out on the potential of this technology and therefore did
streamline their regulators and their control over such companies and exchanges.

Countries like the US are debating
on regulations, and they are classifying the asset type into a category, and
they are working on framing specific laws to control the use of these assets.
Every country proposes a new challenge to the cryptocurrency industry, and each
one of them faces it differently.

Countries like Siberia seem to be
the choice to provide for the high electricity requirement. The Island of Malta
is providing for overseas licensing of offshore companies. Alternative channels are developing to keep
the industry survived.

Governments do not want to push
the industry to the underground, and therefore they are looking to regulate
it. Pushing the cryptocurrency to the
subway will only put the industry more out of control of the government and
eventually making it easy for terrorists and money washers to use it to their
fancy.

The very purpose of
cryptocurrency regulation is to prevent money laundering, and terrorist funding
and governments will do all it takes to keep it sustained.

The current market is considered
to be in the time point when those who are investing in buying the
cryptocurrency for low prices can expect some cost averaging in the long run.
The blood in the streets is indeed the right time to buy, and savvy investors
know that they do not want to miss the opportunity. However, if the price takes a hike to suit
the all-time high hype, then you need to watch the market to learn what
happens.

About The Author

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.